Tesla reports fourth quarterly profit in a row

Defying sceptics, Tesla reported its fourth consecutive quarterly profit, at $104 million, for March through June.

Lora Kolodny reported the news for CNBC:

Tesla just reported its second-quarter results. Shares rose more than 4% after hours as the company beat expectations and reported its fourth straight quarter of profits. 

Here’s how Elon Musk’s electric car and renewable energy business did versus analysts’ expectations, according to estimates compiled by Refinitiv.

• Earnings: $2.18 (ex-items) vs. 3 cents per share, expected.
• Revenue: $6.04 billion vs. $5.37 billion, expected.
• Net income: $104 million (GAAP)

Tesla also reported its first full year of profitability on a GAAP basis, which means it can now be considered for inclusion on the S&P 500 index.

Emily McCormick from Yahoo Finance wrote:

Tesla’s second-quarter results came on the heels of an incredible 280% stock rally for the year to date as investors bet on the company’s long-term prospects, with the coronavirus pandemic weighing more heavily on established auto competitors. The near-fourfold increase in Tesla’s stock made it the second-best performer in the Nasdaq 100 after Moderna (MRNA), and rocketed Tesla’s market capitalization to nearly $300 billion to make it the world’s most valuable automaker. Shares of Tesla rose more than 2% in late trading, as of 4:28 p.m. ET.

Akanksha Rana and Tina Bellon from Reuters noted:

Tesla on Wednesday affirmed its goal to deliver at least half a million vehicles by the end of 2020 despite production interruptions, including the shutting of its California factory for nearly six weeks of the quarter on orders of local authorities. The company delivered more than 90,000 vehicles in the second quarter, surpassing analyst expectations.

“While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target,” the company said.